2 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

CONTENTS 1. Executive Summary ...... 5 2. Introduction: Brief Overview ...... 6 2.1 Location ...... 6 2.2 Historical Perspective ...... 7 2.3 Spatial Patterns ...... 7 2.4 Land ownership ...... 8 3. Social Development Profile ...... 9 3.1 Key Demographics ...... 9 3.1.1. Population ...... 9 3.1.2 Gender, Age and Race ...... 9 3.1.3 Households ...... 10 3.2 Health Profile ...... 11 3.3. COVID-19 ...... 12 3.4 Poverty Dimensions...... 14 3.4.1 Distribution...... 14 3.4.2.Inequality ...... 15 3.4.3.Unemployment and Employment ...... 15 3.4.4 Crime ...... 17 3.5 Education and Skills Profile ...... 18 4. Economic Drivers ...... 21 4.1 Economic Overview ...... 21 4.2 Primary Sector ...... 22 4.3 Secondary Sector ...... 23 4.4 Tertiary Sector ...... 23 4.5 Informal economy ...... 25 5. Service Delivery ...... 25 5.1. Water and Sanitation ...... 25 5.2 Human settlements ...... 26 5.3 Waste Management ...... 27 5.4 Roads and Transport ...... 27 5.5 Electricity ...... 28 6. Governance and Management ...... 28 6.1. Municipal performance ...... 28 6.2 Municipal Capacity ...... 29 6.3 Traditional Affairs Governance: Traditional leaders ...... 30 7. Projects to Diversify and Grow the Economy ...... 31 7.1 Spatial Development ...... 31 7.2 Environmental Features ...... 32 7.3 Infrastructure and Economic Projects ...... 32 8. Key Recommendations ...... 33

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 3

4 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

`

COVID

Source:CSIR/NCDM

-

19Vulnerability Index

Alfred NzoAlfred

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 5

1. Executive Summary

The Alfred Nzo District Municipality is a Category C municipality located in the north-eastern corner of the Province. It stretches from the Mountains, sharing boundaries with Harry Gwala District to the north, OR Tambo District in the south and east, and a boarder with Lesotho in the west. Alfred Nzo is the smallest district in the province, covering only 6% of the geographical area. The municipality is comprised of the , Ntabankulu, Mbizana and Umzimvubu Local Municipalities. The district is geographically located along the border of Eastern Cape and KwaZulu- Provinces establishing the district as a gateway between the two provinces.

The Alfred Nzo District accounts for a total population of 878 635 or 12.1% of the total population in the Eastern with an average annual growth rate of 0.9% between 2009 and 2019. This is projected to increase to 909 000 in 2023.The Alfred Nzo District has significantly more females (54%) than males (46%) when compared to the provincial female population at 52.45% of the total population. There were 195 975 households in 2016, the average household size remaining at 4.8 persons per household from 2006 to 2016. Households headed by children under 18 years old are 4 829 with women heading 57% of households.

As at 05 June 2020, Alfred Nzo District had 87 positive cases with 27 recoveries, 60 active cases and 0 deaths. A total of 376 049 people has been screened and 4 078 tests conducted across the District. One facility in Matatiele has been activated which has a total bed capacity of 53.

The community services sector is the largest within Alfred Nzo District Municipality accounting for R 5.52 billion or 39.6% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the District is the trade sector at 30.4%, followed by the finance sector with 12.5%. The sector that contributes the least to the economy of Alfred Nzo District Municipality is the mining sector with a contribution of R 30.1 million or 0.22% of the total GVA.

There is a need to diversify the economy of the district and include sectors such as agriculture and tourism that will have a direct impact on decreasing the poverty levels. Currently, the agricultural sector is limited in terms of economic expansion as majority of the farming activities in the district are subsistence in nature. Commercial farming is limited to the Cedarville area in the north east of the district.

6 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

2. Introduction: Brief Overview

2.1 Location

Alfred Nzo District Municipality (ANDM) is one of the six districts of Eastern Cape Province of . The District is located in the north-eastern corner of the Eastern Cape Province. It stretches from the Drakensberg Mountains, bordering Harry Gwala District Municipality to the north, OR Tambo District Municipality in the south and east, and Lesotho in the west. Alfred Nzo District Municipality is the smallest district in the province, covering only 6% of the geographical area.

Following the 2011 Local Government Elections, two local municipalities from the O.R. Tambo District Municipality, Mbizana and Ntabankulu were incorporated under Alfred Nzo District Municipality. This increased the Alfred Nzo’s surface area from 6 858 to 10 731 km², and is now sub-divided into four local municipalities: Matatiele, Umzimvubu, Mbizana and Ntabankulu. The seat of Alfred Nzo is . The majority of the people speak isiXhosa.

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 7

2.2 Historical Perspective

The District is named after Alfred Baphethuxolo Nzo, the former secretary-general of the African National Congress and Minister of Foreign Affairs in the late former President Nelson Mandela's cabinet from 1994 to 1999.

Alfred Baphethuxolo Nzo (19 June 1925 – 13 January 2000) was also the longest- standing secretary-general of the African National Congress (ANC). He occupied this position between 1969 and 1991. He was also the first black health inspector in the country. The Alfred Nzo Awards are awarded to deserving health practitioners in South Africa in his honour.

2.3 Spatial Patterns

Alfred Nzo District Municipality was historically part of the Transkei homelands. The district is largely rural in nature, with village settlements defined by the district’s geographical footprint through mountain ranges and river systems. Agriculture and tourism make up core components of the local economy. The local municipalities under Alfred District can be summarized as follows: • The Matatiele municipality is close to the Lesotho/South Africa national border and has two urban nodes – the towns of Matatiele and Cedarville. Matatiele acts as a service node to the agrarian based economy of the area, while Cedarville serves as a secondary service centre. 8 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

• Umzimvubu municipality hosts the district’s administrative capital in Mt Ayliff and the district’s largest economic node in Mt Frere. The traverses the course of this local municipality, and can be seen as its most prominent defining trait. • Ntabankulu municipality has small urban settlements at Ntabankulu town and Cacadu village. This local municipality has a strong rural presence and is geographically defined by several mountain ranges. • Mbizana municipality is the district’s gateway to the Wild Coast and has a medium sized town in Bizana.

In terms of the of the Alfred Nzo District Spatial Development Framework, Mt Ayliff is the only primary node, while Matatiele, Mt Frere and Ntabankulu and Mbizana all serve as secondary nodes. Tertiary nodes include Maluti, Cedarville, Mzamba and others. This recognizes the role of these towns as service centres and commercial hubs for a large part of the district, and a strategic link with towns outside the district. The N2 which runs in a north-south direction linking the Eastern Cape and KwaZulu- Natal provinces serves as the primary corridor and main access route to the district while R56 and R61 are identified as secondary corridor.

2.4 Land ownership Land ownership within Alfred Nzo District Municipality is dominated by state land which functions as the rural villages and accommodates the majority of the population. There are few privately owned farms within Matatiele and Umzimvubu Municipal Areas.

Alfred Nzo District has identified the issue of land tenure as one of its major challenges in terms of spatial planning. Most of the land within its jurisdiction is either under a land claim, communal ownership or under the custody of the House of Traditional Leaders. The Spatial Development Framework (SDF) for Alfred Nzo District has therefore proposed the development of settlement plans throughout the district area as a remedial action to the current spatial planning challenges.

“THE ALFRED NZO DISTRICT HAS SIGNIFICANTLY MORE FEMALES (54%) THAN MALES (46%) WHEN COMPARED TO THE PROVINCE FEMALE POPULATION CONSTITUTING 52.45% OF THE TOTAL POPULATION.”

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 9

3. Social Development Profile

3.1 Key Social Demographics

3.1.1. Population The population of Alfred Nzo District Municipality increased from 802 966 in 2009 to 878 635 in 2019 and accounts for 12.1% of the total population in the Eastern Cape Province. When looking at the average annual growth rate, compared to other districts in the province, Alfred Nzo ranked fifth with an average annual growth rate of 0.9% between 2009 and 2019.

Source: IHS Markit Regional eXplorer version 1946

Based on the present age-gender structure and the present fertility, mortality and migration rates, Alfred Nzo's population is projected to grow at an average annual rate of 0.9% to 909 000 in 2023.

3.1.2 Gender, Age and Race The Alfred Nzo District has significantly more females (54%) than males (46%) when compared to the province female population constituting 52.45% of the total population. This can be attributed to the high male out migration to look for work elsewhere. The median age is 18 years (according to 2016 Community Survey) which is lower than the provincial figure of 21 years and South Africa at 25 years. This indicates a significantly youthful population.

10 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

The largest share of population is within the younger (0-19 years) age categories representing about 54% of the total population. The age categories with the second largest number of people is the young working age (20-49 years) age categories with a total share of 34%, followed by the older working age (50-59 years) age category with 5%.

Population structure, 2019 DC44 Alfred Nzo vs. National

DC44 Alfred Nzo 75+ South Africa 70-74 65-69 60-64 55-59 50-54 Female Male 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 05-09 00-04 8.0% 6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% Source: IHS Markit Regional eXplorer version 1946

The population of Alfred Nzo District consisted of 99.14% African (863 000), 0.24% White (2 110), 0.42% Coloured (3 700) and 0.19% Asian (1 690) people.

3.1.3 Households In 2016, there were 195,975 households in the Alfred Nzo District Municipality. The average household size remained at 4.8 persons per household from 2006 to 2016. PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 11

In Alfred Nzo District, 2.3% of the households are informal dwellings which is lower than the provincial figure of 7.3% and 34% are formal dwellings which is significantly lower than the provincial number of 56%. A significant 53% of the dwellings are traditional dwellings. Furthermore, 81.9% of the houses are fully owned or paid off which is higher than the provincial figure of 69.1%. There are 6% of the dwellings where people are renting.

Households headed by children under 18 years old are 4 829, this is co-dependent with other issues such as education, basic living conditions, health care and life expectancy. Women head 57% of households in the Alfred Nzo District.

“81.9% OF THE HOUSES ARE FULLY OWNED OR PAID OFF WHICH IS HIGHER THAN THE PROVINCIAL FIGURE OF 69.1%.”

3.2 Health Profile

The leading cause of death for children below the age of 5 years and the 5-14 age group is diarrheal diseases at 28% and 19.4% respectively. HIV/AIDS is the leading cause of death for the both the 15-24 and the 25-64 age groups at 18.6% and 24.0% respectively. The leading cause of death for those above 65 is cerebrovascular disease, which accounts for 15.6% of the deaths. In terms of maternal conditions, the top three causes of death included other maternal conditions, which accounted for 34.6% of deaths followed by indirect maternal diseases at 24.2% and maternal sepsis at 17.1% respectively. 12 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

In 2018, 103 000 people in the Alfred Nzo District Municipality were infected with HIV. This reflects an increase at an average annual rate of 1.58% since 2008, and in 2018 represented 11.83% of the district municipality's total population. The Eastern Cape Province had an average annual growth rate of 1.87% from 2008 to 2018 in the number of people infected with HIV, which is higher than that of the Alfred Nzo District Municipality.

The Alfred Nzo District Municipality has 72 clinics, 8 hospitals and 2 community health centers. The district has the most improvised health facilities with problems such as severe staff shortages, lax security measures, leaking roofs, “unreliable” ablution facilities, dilapidated infrastructure, poor filing system and inconsistent delivery of medication, among others.

Local municipality Clinics CHC/CDC Hospitals Matatiele 19 1 3 Umzimvubu 21 0 2 Mbizana 22 0 2 Ntabankulu 10 1 1 Total for Alfred Nzo 72 2 8 Source: Alfred Nzo 2019/20 District Health Plan (Department of Health)

3.3. COVID-19

Alfred Nzo is national hotspot for COVID-19. As at 05 June 2020, Alfred Nzo District had 87 positive cases with 27 recoveries, 60 active cases and 0 deaths. A total of 376 049 people has been screened and 4 078 tests conducted across the District.

The Council for Scientific and Industrial Research (CSIR) in collaboration with Albert Luthuli Centre for Responsible leadership have developed a set of COVID-19 Vulnerability Indicators using available data and knowledge. It identifies vulnerabilities present in communities and identifying areas in need of targeted coordinated PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 13

interventions and early response. The purpose of the indicators is intended to support the early prevention/mitigation and preparedness phase of the disaster management cycle and informing disaster management decision making. It is not based on epidemiological modelling but a response to highlighting intervention areas due to underlying situation. The composition of the index follows two main factors, namely: transmission potential and health susceptibility.

Transmission potential areas identify areas that prevent social distancing to be practiced and where limitations of practicing good basic hygiene. The health susceptibility index denotes areas where large number of people are potential more susceptible to being adversely affected by COVID-10 due to factors such as age and underlying health conditions. The Alfred Nzo vulnerability profile is presented below. The map shows low vulnerability areas (blue dotted areas) versus areas with higher vulnerability (red dotted areas).

Because Alfred Nzo is a labour sending and impoverished area with limited access to basic services it displays high vulnerability to COVID-19. The areas around Mount Ayliff display pafrticularly extreme vulnerability. Whilst the villages around Matatiele (near Masimangweni) and Umzimvubu (near Kwa Dungu), also show high vulnerability. Area specific l GIS vunerability maps are available curtosy of CSIR at: https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d

14 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

There is a total of 10 assessed and approved quarantine facilities in the District with a total bed capacity of 165 and one facility has been activated which has 53 beds. Out of the 10 facilities, five are in the Matatiele local municipality, 3 in the Umzimvubu local municipality, 1 in the Mbizana local municipality and 1 in the Ntabankulu Municipality.

LOCAL MUNICIPALITY NAME OF FACILITY STATE-OWNED OR AVAILABLE STATUS PRIVATE BEDS Matatiele The Royal Courtyard Private 53 Activated Matatiele Rest Haven Guest House Private 8 Pending activation Matatiele Beverly Corner Lodge Private 10 Pending activation Matatiele Gateway House Lodge State-Owned 6 Pending activation Matatiele Laphola Guest house Private 9 Pending activation Umzimvubu Madzikane ka Zulu Hospital State-Owned 6 Pending activation Umzimvubu Lisomma Guest House Private 12 Pending activation Umzimvubu Tapi River Lodge (Mt Frere) Private 24 Pending activation Ntabankulu Imvovo Country Lodge Private 29 Pending activation Mbizana Hluma B&B Private 8 Pending activation TOTAL FOR ALFRED NZO 165

3.4 Poverty Dimensions

3.4.1 Distribution Alfred Nzo District is considered the poorest district in the province and in the country. In 2019, there were 628 224 people living in poverty, using the lower poverty line definition, across the Alfred Nzo District which accounts for 71.5% of the total population. This is significantly higher percentage of the population when compared to the Eastern Cape provincial figure which was at 54.3%. Ntabankulu and Mbizana local municipalities are ranked first and second most poor local municipalities in the country with 78% and 77.3% of the total population living in poverty. Umzimvubu and Matatiele local municipalities are at 67% and 63.8% of the population living in poverty respectively. As a consequence of the poverty levels in the district, there is a cumulative total of 364 205 grant dependents in the district. The number of beneficiaries per grant type is indicated in the table below:

GRANT TYPE TOTAL BENEFICIARIES Care Dependency Grant 2661 Child Support Grant 252315 Combination 607 Disability Grant 18440 Foster Care Grant 11628 Grant-In-Aid 4493 Old Age Grant 54395 TOTAL FOR ALFRED NZO 344539 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 15

3.4.2. Inequality Alfred Nzo District has a Gini coefficient of 0.52, which is the lowest, compared to the other districts in the province and is below the provincial index value of 0.62.

Alfred Nzo District has over 90% of its residence earning less that R1600 per month. The average annual household income was R14 600, which is significantly lower than the national average at R29 400. In relation to household goods, 91% of household have access to a cell phone and 52% to a television. Only about 10% of households have access to a car.

3.4.3. Unemployment and Employment In 2018, there were 107 000 people employed in the District which is 7.29% of the total employment in Eastern Cape Province, 0.66% of total employment in South Africa. Employment within Alfred Nzo decreased annually at an average rate of - 0.16% from 2008 to 2018.

16 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

The economic sectors that recorded the largest number of employment in 2018 were the community services sector with a total of 31 900 employed people or 29.8% of total employment in the district municipality. The trade sector with a total of 24 700 (23.0%) employs the second highest number of people relative to the rest of the sectors. The mining sector with 126 (0.1%) is the sector that employs the least number of people in Alfred Nzo District Municipality, followed by the electricity sector with 145 (0.1%) people employed.

In 2018, the unemployment rate in Alfred Nzo District Municipality was 39.73%, which is an increase of 12.7%, higher than that of Eastern Cape.

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 17

3.4.4 Crime The IHS Composite Crime Index makes use of the official SAPS data, which is reported in 27 crime categories (ranging from murder to crime injuries). These 27 categories are divided into two groups according to the nature of the crime: i.e. violent crimes and property crimes.

18 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

Under the category of serious crimes reported by the community, there were 17 sub- crimes which for Alfred Nzo district include drug related crimes (2 341), robbery at non-residential premises (198), robbery at residential premises (182), illegal possession of firearms and ammunition (124), carjacking (109), truck jacking (3), robbery of cash-in-transit (3),

3.5 Education and Skills Profile

Within Alfred Nzo District Municipality, the number of people without any schooling decreased from 2008 to 2018 with an average annual rate of -4.92%, while the number of people within the 'matric only' category, increased from 39,300 to 61,600. The number of people with 'matric and a certificate/diploma' increased with an average annual rate of 4.95%, with the number of people with a 'matric and a Bachelor's' degree increasing with an average annual rate of 5.86%. Overall improvement in the level of education is visible with an increase in the number of people with 'matric' or higher education. The number of people without any schooling in Alfred Nzo District Municipality accounts for 12.14% of the number of people without schooling in the province and a total share of 1.68% of the national. In 2018, the number of people in Alfred Nzo District Municipality with a matric only was 61,600 which is a share of 6.54% of the province's total number of people that has obtained a matric. The number of people with a matric and a Postgrad degree constitutes 6.47% of the province and 0.52% of the national.

In terms of education facilities, Alfred Nzo District has 274 primary schools, 482 combined schools and 77 secondary schools (823 schools in total). The district also PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 19

has 1 TVET college with 2 campuses located in Mount Free and Mbizana towns. In total there are 6 514 students enrolled in the college. Courses offered include Engineering studies, Business Management, Financial Management and Public management.

“IN TERMS OF EDUCATION FACILITIES, ALFRED NZO DISTRICT HAS 274 PRIMARY SCHOOLS, 482 COMBINED SCHOOLS AND 77 SECONDARY SCHOOLS (823 SCHOOLS IN TOTAL).”

20 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 21

4. Economic Drivers

4.1 Economic Overview

The Alfred Nzo District Municipality had a total GDP of R 15.3 billion and in terms of total contribution towards Eastern Cape Province ranked seventh relative to other districts in the province. In terms of its share, it was in 2018 (4.1%) slightly smaller compared to what it was in 2008 (4.4%). For the period 2008 to 2018, the average annual growth rate of -0.1% of Alfred Nzo was the lowest relative to its peers in terms of growth.

In 2018, the Alfred Nzo District Municipality achieved an annual growth rate of -0.12%, which is a significant lower GDP growth than the Eastern Cape Province's 0.78%, and is lower than that of South Africa, where the 2018 GDP growth rate was 0.79%. The economic growth in Alfred Nzo peaked in 2008 at 5.37%.

In 2023, Alfred Nzo's forecasted GDP will be an estimated R 10.2 billion (constant 2010 prices) or 4.0% of the total GDP of Eastern Cape Province. At a 1.49% average annual GDP growth rate between 2018 and 2023, Alfred Nzo ranked the third compared to the other regional economies.

22 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

Alfred Nzo as % Alfred Nzo as Alfred Nzo Eastern Cape National Total of province % of national Agriculture 0.2 6.7 106.1 3.5% 0.22% Mining 0.0 0.4 350.9 6.8% 0.01% Manufacturing 0.6 43.6 572.9 1.3% 0.10% Electricity 0.2 9.0 166.0 2.1% 0.11% Construction 0.5 13.3 170.3 3.7% 0.29% Trade 4.2 67.9 652.7 6.2% 0.65% Transport 0.9 30.3 426.7 3.1% 0.22% Finance 1.7 61.4 854.4 2.8% 0.20% Community services 5.5 102.7 1,041.3 5.4% 0.53% Total Industries 13.9 335.3 4,341.3 4.2% 0.32% Source: IHS Markit Regional eXplorer version 1803

In 2018, the community services sector was the largest within Alfred Nzo District Municipality accounting for R 5.52 billion or 39.6% of the total GVA in the district municipality's economy. This was followed by the trade sector at 30.4%, and the finance sector with 12.5% respectively. The sector that contributes the least to the economy of the District is the mining sector with a contribution of R 30.1 million or 0.22% of the total GVA.

4.2 Primary Sector

The primary sector consists of two broad economic sectors namely the mining and the agricultural sector.

Between 2008 and 2018, the agriculture sector experienced the highest positive growth in 2008 with an average of 17.4%. The mining sector reached its highest point of growth of 10.1% in 2017. However, the agricultural sector experienced the lowest growth for the period during 2016 at -16.2%, while the mining sector reaching its PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 23

lowest point of growth in 2009 at -12.6%. The primary sector is expected to grow at an average annual rate of 1.19% between 2018 and 2023.

4.3 Secondary Sector

The secondary sector consists of three broad economic sectors namely the manufacturing, electricity and construction sector. Between 2008 and 2018, the manufacturing sector experienced the highest positive growth in 2008 with a growth rate of 4.0%. It is evident for the construction sector that the highest positive growth rate also existed in 2008 and it experienced a growth rate of 10.6% which is higher than that of the manufacturing sector.

The manufacturing sector experienced its lowest growth in 2010 of -9.9%, while construction sector reached its lowest point of growth in 2010 with -5.0% growth rate. The electricity sector experienced the highest growth in 2017 at 40.6%, while it recorded the lowest growth of -26.8% in 2018. The secondary sector is expected to grow at an average annual rate of 1.04% between 2018 and 2023.

4.4 Tertiary Sector

The tertiary sector consists of four broad economic sectors namely the trade, transport, finance and the community services sector. 24 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

The trade sector experienced the highest positive growth in 2008 with a growth rate of 5.7%. It is evident for the transport sector that the highest positive growth rate also existed in 2008 at 2.6% which is lower than that of the manufacturing sector. The finance sector experienced the highest growth rate in 2008 when it grew by 7.6% and recorded the lowest growth rate in 2009 at -2.4%. The Trade sector also had the lowest growth rate in 2009 at -4.4%. The community services sector, which largely consists of government, experienced its highest positive growth in 2008 with 5.4% and the lowest growth rate in 2013 with -2.3%. The Tertiary sector is expected to grow at an average annual rate of 1.51% between 2018 and 2023.

“THE SECONDARY SECTOR CONSISTS OF THREE BROAD ECONOMIC SECTORS NAMELY THE MANUFACTURING, ELECTRICITY AND CONSTRUCTION SECTOR.”

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 25

4.5 Informal economy

The number of people employed in the informal sector in the Alfred Nzo District counted 31 600 or 29.51% of the total employment. Informal employment in Alfred Nzo decreased from 32 600 in 2008 to an estimated 31 600 in 2018.

In 2018 the Trade sector recorded the highest number of informally employed, with a total of 11 600 employees or 36.83% of the total informal employment. This can be expected as the barriers to enter the Trade sector in terms of capital and skills required is less than with most of the other sectors. The Manufacturing sector has the lowest informal employment with 1 670 and only contributes 5.28% to total informal employment.

5. 5. Service Delivery

5.1. Water and Sanitation

Alfred Nzo District Municipality had 10 800 (or 5.72%) households with piped water inside the dwelling, 19 600 (10.35%) households had piped water inside the yard and 116 000 (61.20%) households had no formal piped water.

26 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

“THE DISTRICT HAD 76 400 (40.31% OF TOTAL HOUSEHOLDS) FORMAL DWELLING UNITS” Communal Communal Piped water Piped piped water: piped water: No formal inside water in more than Total less than 200m piped water dwelling yard 200m from from dwelling dwelling Matatiele 4,570 10,800 13,700 5,660 20,500 55,200 Umzimvubu 4,010 4,910 10,900 3,190 27,900 50,900 Mbizana 1,830 2,730 2,310 1,290 49,300 57,400 Ntabankulu 427 1,190 4,460 1,630 18,300 26,000 Total 10,841 19,619 31,355 11,764 116,064 189,644 Alfred Nzo Source: IHS Markit Regional eXplorer version 1803

Alfred Nzo District Municipality had 17 700 flush toilets (9.32% of total households), 130 000 Ventilation Improved Pit (VIP) (68.74% of total households) and 31 100 (16.39%) of total households pit toilets.

Ventilation Bucket Flush toilet Improved Pit Pit toilet No toilet Total system (VIP) Matatiele 8,060 32,400 11,400 104 3,270 55,200 Umzimvubu 6,240 34,100 8,420 72 2,150 50,900 Mbizana 1,310 45,400 7,780 271 2,670 57,400 Ntabankulu 2,070 18,500 3,440 90 1,890 26,000 Total 17,671 130,369 31,086 537 9,982 189,644 Alfred Nzo Source: IHS Markit Regional eXplorer version 1803

5.2 Human settlements

Alfred Nzo District Municipality had 4 650 (2.45% of total households) very formal dwelling units, 76 400 (40.31% of total households) formal dwelling units and 33 700 (17.79% of total households) informal dwelling units.

Other Very Formal Formal Informal Traditional Total dwelling type Matatiele 3,130 23,500 8,890 17,600 2,090 55,200 Umzimvubu 919 20,300 8,440 20,800 414 50,900 Mbizana 338 25,400 11,100 20,300 272 57,400 Ntabankulu 255 7,210 5,280 13,200 110 26,000 Total 4,646 76,453 33,731 71,924 2,890 189,644 Alfred Nzo Source: IHS Markit Regional eXplorer version 1803 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 27

5.3 Waste Management

Alfred Nzo District Municipality had 14 600 (7.70%) households which had their refuse removed weekly by the authority, 1 680 (0.89%) households had their refuse removed less often than weekly by the authority and 156 000 (82.39%) households which had to remove their refuse personally (own dump).

Removed Removed Removed by Personal less often No refuse weekly by community removal Total than weekly removal authority members (own dump) by authority Matatiele 8,540 835 1,260 41,700 2,930 55,200 Umzimvubu 3,710 458 991 43,200 2,600 50,900 Mbizana 1,290 207 916 51,800 3,190 57,400 Ntabankulu 1,060 180 377 19,600 4,840 26,000 Total 14,606 1,681 3,544 156,255 13,558 189,644 Alfred Nzo Source: IHS Markit Regional eXplorer version 1803

5.4 Roads and Transport

The rail network in the district is limited to the Matatiele and Cedarville towns where the rail runs through these towns in a north east to west direction connecting these towns to the KwaZulu-Natal Province.

The main roads in the Alfred Nzo District include: • The N2 – This is a national road which runs in a north-south direction linking the Eastern Cape and KwaZulu- Natal provinces. • The R56 – This is a regional road which runs along the northern and western boundaries linking Matatiele with to the east and Mt Fletcher to the south respectively. • The R61- This is a regional road linking Mbizana and Port Edward

Other roads include: • Three gravel roads from N2 to R56 (ending at Cedarville and Ematolweni, the (405) • Gravel back road from Mount Ayliff to Mount Frere passing through Sphambukeni and Cancele junctions • R626 from N2 (Phakade junction) to R61 (Kubha junction), and on to Flagstaff • Matatiele to Qacha’s Nek (Lesotho) • Matatiele to Queen’s Mercy, Malekgonyane (Ongeluksnek) and Thaba Chicha. 28 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

The new Wild Coast N2 is being planned from Mzamba to the new Mtentu Bridge 30 km to the south.

5.5 Electricity

Alfred Nzo District Municipality had 39 800 (20.96%) households with electricity for lighting only, 87 000 (45.85%) households had electricity for lighting and other purposes and 62 900 (33.19%) households did not use electricity.

Electricity for Electricity for lighting and other Not using electricity Total lighting only purposes Matatiele 10,700 24,400 20,100 55,200 Umzimvubu 8,510 25,600 16,800 50,900 Mbizana 16,900 27,700 12,800 57,400 Ntabankulu 3,600 9,160 13,300 26,000 Total 39,756 86,954 62,934 189,644 Alfred Nzo Source: IHS Markit Regional eXplorer version 1803

6. Governance and Management 6.1. Municipal performance

The Alfred Nzo District has a functional Audit Committee which in order to enhance its effectiveness, has developed and adopted an Audit Committee Charter to guide the functionality of the Committee. This has played a role in improving its audit opinion. In the last two financial years, it has obtained a qualified audit opinion. The summary overview of the Audit Outcome is as follows:

Municipality Financial Year Audit Report 2010/2011 Disclaimer 2011/2012 Disclaimer 2012/2013 Disclaimer 2013/2014 Qualified Alfred Nzo DM 2014/2015 Qualified 2015/2016 Qualified 2016/2017 Qualified audit 2017/2018 Unqualified - Emphasis of Matter items PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 29

6.2 Municipal Capacity

The organogram of the Alfred Nzo District provides for 790 employee positions. 318 (40.25%) of these positions are vacant. One Section 57 post is not filled (88% occupied). The management echelon of the District Municipality has 39 post of which 2 are vacant (5%).

The following levels of vacancy rates are challenging: - Community and Social Service Positions - vacancy rate 26%; - Finance and Administration Positions - vacancy rate 21%; - Public Safety Positions - vacancy rate 28%; - Wastewater Management Positions - vacancy rate 78%; and - Water Positions - vacancy rate 60%.

The ANDM Organogram makes no provision for Environmental Protection Positions or Health Positions.

The table below indicates the reported occupancy and vacancy levels for Municipal Managers:

Municipality No. of times reported on MM No. of times - MM No. of times – position filled MM vacant Alfred Nzo - - - Matatiele 10 10 - Umzimvubu 5 5 - Mbizana 9 9 - Ntabankulu 9 7 2 Total 33 31 2 (Source: M&E: LGSIM DCoG)

The table below indicates the reported occupancy and vacancy levels for Chief Financial Officers:

Municipality No. of times reported on CFO No. of times - CFO No. of times – position filled CFO vacant Alfred Nzo - - - Matatiele 10 8 2 Umzimvubu 5 5 - Mbizana 9 9 - Ntabankulu 9 7 2 Total 33 29 4 (Source: M&E: LGSIM DCoG)

30 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

The table below indicates the reported occupancy and vacancy levels for Section 56 Managers: Municipality No. of times Average No. of S56 Average No. of Average % of reported on S56 positions across S56 positions positions filled positions reporting months filled Alfred Nzo DM - - - - Matatiele LM 10 4 4 88 Umzimvubu L M 15 5 5 100 Mbizana LM 9 4 4 88 Ntabankulu LM 9 4 3 86 Total 33 4 4 89 (Source: M&E: LGSIM DCoG)

The following table shows the staff establishment (July 18–June19): Municipality Submission rate (July 18 – Average per month of Average per month of June 19) Permanent employees Temporary employees Alfred Nzo - - - Matatiele 12 2 1 Umzimvubu 5 149 282 Mbizana 9 204 35 Ntabankulu 9 161 13 Total 35 144 56 (Source: M&E: LGSIM DCoG)

The information provided shows that there was an average number of 144 permanent employees and 56 temporary employees across the reporting municipalities during the reporting period. Mbizana (204) and Ntabankulu (161) reported the highest average numbers of permanent employees. Umzimvubu has the highest number of temporary employees of 282 which exceeds the number of its permanent employees (149). Matatiele reported to have an average of 2 permanent employees and 1 temporary employee.

6.3 Traditional Affairs Governance: Traditional leaders

The following table illustrates the total number of traditional councils reported by the municipalities and the participation rate of these in Council meetings. Jul 18- Jun 19 Submission rate (Jul 18- Jun Municipality # of traditional # traditional leaders 19) leaders participated Alfred Nzo DM 0 - - Matatiele LM 12 12 6 Umzimvubu LM 5 11 10 Mbizana LM 9 11 10 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 31

Ntabankulu LM 9 7 5 Total 35 41 31 (Source: M&E: LGSIM DCoG)

There is a total of 41 traditional councils within the Alfred Nzo District. 31 of these traditional councils participated in municipal council meetings. Matatiele reported consistently on both the number of traditional councils and their participation rate in council meetings. The participation rate for traditional leaders in council meetings was 76%, and this is an indication of a good participation in council meetings for all the reporting municipalities in the district.

7. Projects to Diversify and Grow the Economy 7.1 Spatial Development

The Draft National Spatial Development Framework, has identified Alfred Nzo as one of the national rural nodes.

A portion of Alfred Nzo District forms part of the Coastal Transformation Corridor which is part of the National Transformation Corridors as identified in the National Spatial Development Framework (NSDF, 2019). The Bizana and Mount Ayliff towns have been identified in the national system of Nodes and Corridors as National Rural Services Centres meaning that these towns play a critical role in servicing a significant amount of the rural population. The Mbizana, Ntabankulu and Umzimvubu Local Municipalities will be affected by the Coastal Transformation Corridor, which means that these municipalities have a significant role in ensuring the success of the National Coastal Corridor. 32 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY

7.2 Environmental Features

The Alfred Nzo District has the Environmental Management Plan in place which was prepared as a means to promote sound environmental management and promote sustainable land use practices within the district. The plan adopts a long-term vision, but also identifies short to medium term actions that need to be addressed as part of the IDP process. These include capacity building and training, catchment management, protected areas, climate change and vulnerability mapping, and waste management. The plan also identifies priority environmental areas (PEAs) which include the following areas: • Mount Fletcher-Maluti Drakensburg Escarpment. • Ongeluksnek-Matatiele Ridge Corridor. • Western Tswereke Catchment • Semongkong ridgeline • Matatiele - Cedarville Ridge Corridor

7.3 Infrastructure and Economic Projects

SECTOR & SUB- CATALYTIC DETAILS SPATIAL LOCATION INVESTME BY SECTORS PROJECTS NT WHOM Construction of a dam at Lalini Village ECONOMIC Lalini will generate (Umzimvubu LM – Alfred DEDEAT INFRASTRUC Umzimvubu hydroelectricity Nzo District) TURE Multi-purpose Construction of Ntabelanga Ntabelanga Village DRIVEN Development Dam on the Tsitsa River to (Umzimvubu LM – Alfred DEDEAT INITIATIVES supply domestic and Nzo District) PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 33

SECTOR & SUB- CATALYTIC DETAILS SPATIAL LOCATION INVESTME BY SECTORS PROJECTS NT WHOM industrial water requirements and irrigated agriculture Terminal building and run- Airport away upgrade Umthatha R55m DRPW 560km route between Gonubie (East London) and Wild Coast N2 Isiphingo (), including highway “Greenfields” sections East London – Durban N2 - DRPW totalling approximately 96 km TRANSPORT between Port Saint Johns and Port Edward Port Saint Johns to Port Access road 96 km Edward SANRAL/ Farm Access Roads and DRPW/ Rural Roads Farm Produce Access - R850m DRDAR/ Routes COGTA Siphethu Hospital Road Siphethu R1.3b DRPW Construction Madwaleni BASIC Hospital Road Madwaleni DRPW SERVICE Construction Construction, maintenance DELIVERY Mzamba to and repair of a number of INFRASTRUC Magusheni Provincial and Municipal TURE Road Roads Mzamba DRPW Construction Road Mbizana Local DRPW Construction Municipality Broadban d Infraco, SITA and ICT Broad band 1400 sites of public facilities Umthatha - in the OR Tambo District. . ECDC and CSIR Mkambathi Nature Concession agreement TOURSIM Reserve. reached Mkambathi R65m DEDEAT

RED hub at Support maize and sorghum AGRO- Mqanduli production through provision Mqanduli PROCESSIN RED hub at, of inputs, mechanisation, Mbizana R150m DRDAR G Mbizana finance, technical support, storage, milling and markets.

8. Key Recommendations

Under the Strategic Infrastructure Project (SIP) 3, the South-Eastern node & corridor development of the Province include plans for uMzimvubu dam with irrigation systems. There is also the N2-Wild Coast Highway which is aimed at improving access into KwaZulu- Natal and access to Port Elizabeth. However, this project is faced with social mobilisation deficit and poor coordination of stakeholder 34 PROFILE: ALFRED NZO DISTRICT MUNICIPALITY engagement. This is require an all of government approach and resolving these challenges.

Agriculture is the main economic activity in the District. Currently, it has a limited base for economic expansion due to the fact that the majority of farming is traditional subsistence farming. Commercial farming is limited to the Cedarville area in the north east of the District. The District has favourable conditions for the development of the agricultural sector and it is therefore critical to assess the potential of this industry and devise methods of exploiting this untapped potential. The District has also been selected as one of the regions to undertake the implementation of AgriParks initiative.

PROFILE: ALFRED NZO DISTRICT MUNICIPALITY 35